Title
Supreme Court
HCL Technologies Philippines, Inc. vs. Guarin, Jr.
Case
G.R. No. 246793
Decision Date
Mar 18, 2021
Employee terminated due to redundancy after account termination, signed quitclaim; Supreme Court upheld valid dismissal, no monetary awards.

Case Digest (G.R. No. 246793)
Expanded Legal Reasoning Model

Facts:

  • Employment and Assignment
    • HCL Technologies Philippines, Inc. (HCL), a business process outsourcing company, hired Francisco A. Guarin, Jr. on November 11, 2013, as its senior technical support officer.
    • Guarin, Jr. was initially assigned to the Salesforce.com Inc. account where he was tasked to provide technical support to administrators and users.
    • On July 5, 2016, Salesforce informed HCL that it would no longer require HCL’s services effective October 15, 2016, thereby affecting Guarin, Jr.’s assignment.
  • Options and Termination Process
    • Following Salesforce’s decision, HCL presented Guarin, Jr. with three options:
      • File an application with Accenture;
      • Seek a position within HCL, specifically under its Google account;
      • Resign.
    • Although two positions (support engineer for the App Engine and for the Computer Engine) were available in the Google account, Guarin, Jr. submitted his resume after the deadline.
    • Guarin, Jr. was subsequently directed not to return to work beginning October 1, 2016, and on October 15, 2016, HCL notified him, via a letter, that his position had become redundant with his last working day set as November 15, 2016.
    • Guarin, Jr. executed a release, waiver, and quitclaim acknowledging receipt of separation pay amounting to P182,340.65.
  • Judicial and Quasi-Judicial Proceedings
    • Labor Arbiter (LA) Decision (June 30, 2017):
      • Declared Guarin, Jr. to have been illegally dismissed;
      • Ordered HCL to pay backwages from the time of dismissal until the finality of the decision;
      • Awarded moral and exemplary damages amounting to P100,000.00 and attorney’s fees of 10% of the total award;
      • Held that HCL satisfied only the first two requisites for a valid redundancy (notice and separation pay) but failed to show good faith in abolishing the redundant position and did not use fair and reasonable criteria in deciding redundancy.
    • National Labor Relations Commission (NLRC) Decision (October 30, 2017):
      • Partially granted the appeals of both parties by modifying the award computation;
      • Upheld that HCL did not prove the abolition of Guarin, Jr.’s position or a valid redundancy scheme;
      • Declared the quitclaim invalid on the basis that Guarin, Jr.’s execution was not proven to be voluntary given the circumstances.
    • Court of Appeals (CA) Decision (January 29, 2019):
      • Affirmed the NLRC Decision with a modification imposing legal interest on monetary awards at 6% per annum;
      • Reiterated that HCL only complied with the notice and separation pay requirements, failing to establish the good faith and criteria requisites;
      • Held the quitclaim invalid, pointing to fraud or deceit in its execution.
    • Petition for Review on Certiorari filed by HCL before the Supreme Court, challenging the rulings of the lower tribunals.

Issues:

  • Central Issue
    • Whether the CA erred in affirming the NLRC and the LA that Guarin, Jr. was illegally dismissed.
  • Underlying Issues
    • Whether HCL’s redundancy program satisfied all the legal requisites under Article 298 of Presidential Decree No. 442 (the Labor Code of the Philippines).
    • Whether the requirement of good faith and the establishment of fair and reasonable criteria in abolishing redundant positions were met by HCL.
    • The validity of the release, waiver, and quitclaim executed by Guarin, Jr., specifically if it was procured by fraud, deceit, or unconscionable terms.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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